THE BRITANNIA YACHT CLUB FOUNDATION (BYCF) POLICIES

1. BYCF Policy on Receiving Contributions

1.1 Receiving Donations:

The Britannia Yacht Club Foundation (BYCF) will accept gifts of money, cheques, bank drafts, stocks, bonds, GIC’s, proceeds of life insurance policies or other negotiable instruments. The value of any gift given in stocks, bonds, GIC’s or other negotiable instruments will be determined at the Fair Market Value on the date the gift is received into the BYCF invest account.

BYCF will accept gifts-in-kind which we are specifically soliciting.

If any person, corporation or other legal entity wishes to make a gift or contribution in a form other than that outlined above, please speak to a member of the Board of Directors of the BYCF or to the manager of the Britannia Yacht Club (BYC).

Gifts in Kind in excess of $1,000 will require independent appraisal to determine fair market value.

1.2 Donation Designations:

A Donor may request, in writing, that their contribution be treated as Legacy Funds (capital preservation) or as Project Funds (capital expended). Legacy Funds represent contributions that are preserved with only the income earned being expended on the designated purpose while Project Funds are contributions that are anticipated to be expended on shorter term projects.

1.2.1 Legacy Funds

A Donor may also request, in writing, that their Legacy contribution be designated to an allowable Designation Category. BYCF, through its articles of incorporation and by-law, is only allowed to engage is certain activities; designation of contributions must fall under an allowable Designation Category. As such, Donor designations will be accepted in one or more of the following Designation Categories. If no designation is made by the donor then the contribution will be assigned to the GENERAL Category.

Designation Categories:

GENERAL

YOUTH SAILING PROGRAMS

RACING PROGRAMS

TENNIS PROGRAMS

ENHANCEMENT OF THE OTTAWA RIVER VALLEY ENVIRONMENT

PROGRAMS FOR BOATING AND WATER SAFETY

BYC BUILDING AND GROUND IMPROVEMENTS

BYC HARBOUR IMPROVEMENTS

BASKINS MEMORIAL PARK

1.2.2 Project Funds

A Donor may request, in writing, that their Project contribution be a specific project within an allowable Designation Category. BYCF, through its articles of incorporation and by-law, is only allowed to engage is certain activities; designation of contributions must fall under an allowable Designation Category. As such, Donor designations will be accepted in one or more of the following Designation Categories. If no designation is made by the donor then the contribution will be assigned to the GENERAL Category.

Designation Categories:

GENERAL

YOUTH SAILING PROGRAMS

RACING PROGRAMS

TENNIS PROGRAMs

ENHANCEMENT OF THE OTTAWA RIVER VALLEY ENVIRONMENT

PROGRAMS FOR BOATING AND WATER SAFETY

BYC BUILDING AND GROUND IMPROVEMENTS

BYC HARBOUR IMPROVEMENTS

BASKINS MEMORIAL PARK

Should the specific project to which a Donor has contributed not go forward after five (5) years, the contribution will be directed to other projects in the same Designation Category.

1.3 Donor Recognition

Donors will be recognized in the Annual Report unless a donor requests anonymity.

Donors not requesting anonymity may be formally recognized in other manners at the discretion of the Board of Directors.

2 BYCF Investment Policy

2.1 General

The BYCF will channel all of its investment assets through professional investment advisors with a major Canadian wealth management firm.

Legacy and Project Funds will be held in investment accounts at a major Canadian wealth management firm. Returns (interest or dividends) on invested capital will be transferred to the BYCF bank account on a monthly basis.

Investment decisions will be made by resolution of the Board of Directors on the advice of the selected professional investment advisors noted above.

THE BYCF will not loan out or invest any funds other than as set out in this policy.

Monies generated by the Investment Portfolio(s), (the BYCF’s income) shall be distributed in accordance with the BYCF’s Distribution Policy.

2.2 Investing Legacy Funds

For Legacy Funds, our intention is to preserve the capital and any capital gains. Our objective is to earn a return (interest or dividends) on invested capital between 4% and 6% annually over time (based on current 2011 market conditions). These Legacy Funds will be placed in a prudent conservative diversified investment portfolio with the following conditions or limitations:

No single asset will exceed $50,000 or 10% of the total value of the portfolio whichever is higher.

Portfolio allocation targets fall in the range of:

CASH: 0% to 10%

STOCKS: 40% to 60%

FIXED INCOME SECURITIES: 40% to 60%

Investments may be turned into CASH on the advice of the BYC’s Investment Advisor as a means of preserving the capital of the BYCF.

For the purposes of this Investment Policy:

CASH is Canadian currency or a recognized money market or cash instrument.

Restricted to public company’s who have shown consistent performance and consistent distribution of dividends over a consecutive period of 5 years or more.

FIXED INCOMESECURITIES in which BYCF will invest are :

bonds of:

The Canadian Federal Government,

A Canadian Provincial Government,

A Canadian Municipal Government; or

A Corporation listed on a major recognized exchange, and

Must be rated as grade “BBB or B++” or better as set out by the Dominion Bond Rating Service or Standard and Poor Fixed Income Rating Agencies.

Preferred Shares of a Corporation listed on a major recognized exchange limited to those Corporations whose preferred shares are rated as grade “P3” or better as set out by the Dominion Bond Rating Service or Standard and Poor Fixed Income Rating Agencies.

Guaranteed Investment Certificates ( GICs).

2.3 Investing Project Funds

For Project Funds our intention is to hold these funds in short term investments (CASH or cashable GICs) to earn income on the contributions until the funds and any income earned (less related expenses) are expended on the designated purpose. Project Funds will be held in a separate investment portfolio from the Legacy Funds.

3. BYCF DISTRIBUTION POLICY

3.1 General

It is the intent of the BYCF Board of Directors to minimize the non-purpose administrative expenditures of the BYCF. Administrative expenditures include such items as:

Expenditures required by law such as income taxes, corporate information filings;

Annual Audit Fees;

Annual General Meeting expenses; and

Member communications.

Administrative expenses will be paid from the returns (interest or dividends) on invested capital and only if necessary from the invested capital.

3.2 Allocation of Investment Portfolio Returns

All Legacy Funds will be grouped into one Investment Portfolio as described in the BYCF Investment Policy above and all returns on this portfolio will be allocated to the designated purposes on a pro rated basis.

All Project Funds will be grouped into a separate Investment Portfolio as described in the BYCF Investment Policy and all returns on this portfolio will be allocated to the designated purposes on a pro rated basis.

3.3 Distribution of Gifts-in-Kind

Gifts-in-kind will be distributed throughout the fiscal year by resolution of the BYCF Board of Directors as the solicited purpose for the gift-in-kind occurs.

3.4 Distribution of Project Funds and Project Investment Portfolio Income

Project funds and Project Investment Portfolio Income less related investment expenses will be distributed throughout the year by resolution of the BYCF Board of Directors as the projects occur.

3.5 Distribution of Legacy Fund Investment Portfolio Returns

All returns for from the Legacy Investment Portfolio earned in the fiscal year ending October 31, minus BYCF expenses are available for distribution annually.